Treasury plans to loan up to $1 trillion to private investors for the purchase of bank toxic assets. The private sector will leverage low interest taxpayer money two to three times. Treasury Chief Tim Geithner put off the details, yet again. Bloomberg reported:
Tim sold the program with odd logic:
Borrowing may allow a higher price. It also could allow more volume at lower prices. This sounds like a political sales job. If it's a bait and switch, what is Tim hiding?
What additional taxpayer guarantees are included for the private equity underwriter (PEU) boys? They got $25 billion in stimulus for buying back debt for pennies on the dollar. Citizens tapping their IRA's to save their house were ignored. Things are becoming more precise. Corporfornication lives.
Geithner said the Treasury will provide “precise” details of the plan in the next few weeks. “People will see how it’s going to operate and then it will go into place over the following weeks and months.”
Tim sold the program with odd logic:
The leverage increases the potential rewards while reducing the risk, allowing investors to pay a higher price for the toxic assets.
Borrowing may allow a higher price. It also could allow more volume at lower prices. This sounds like a political sales job. If it's a bait and switch, what is Tim hiding?
What additional taxpayer guarantees are included for the private equity underwriter (PEU) boys? They got $25 billion in stimulus for buying back debt for pennies on the dollar. Citizens tapping their IRA's to save their house were ignored. Things are becoming more precise. Corporfornication lives.
